13 1 2 3 4 5 6 7 8 10 11 ties of the railroad or agency under such order or under an order issued under subsection (b) of this section shall be conditioned upon payment by the Corporation of the com pensation fixed by the Commission. In fixing just and reasonable compensation for the use of tracks and facilities ordered by the Commission under the preceding sentence, the Commission shall limit such compensation to the avoidable costs of permitting the Corporation to use the railroad's or agency's tracks and facilities. In fixing just and reasonable compensation for the provision of services ordered by the Commission under the second sentence of this subsec12 tion, the Commission shall order compensation (if any) in 13 excess of avoidable costs only in proportion to increases in 14 the quality of service and only where the railroad or agency 15 provides ontime performance in excess of 80 percent of the 16 time under the fastest practicable operating schedule (consist17 ent with Federal safety standards established pursuant to 18 the Federal Railroad Safety Act of 1970). If the amount of compensation fixed is not duly and promptly paid, the 20 railroad or agency entitled thereto may bring an action 21 against the Corporation to recover the amount properly 22 owed. 19 23 "(B) For purposes of this section, 'avoidable costs' shall 24 mean all reasonable and necessary expenses (including use 25 of tracks and other facilities) which would be incurred by 14 1 2 12 a carrier in providing a service which the carrier can estab lish that it would not incur if such service were not operated, 3 and all other services were continued. Such costs shall be 4 restricted to costs solely related to the service and the 5 variable portion of common costs which would not be in6 curred but for the existence of the service. Such costs shall 7 exclude fixed common costs, allocation of any common costs 8 which do not vary as a consequence of providing the service, 9 return on investment, rent, and any other costs which the 10 carrier cannot establish that it would not have reasonably 11 and necessarily incurred but for the existence of the service. "(2) Notwithstanding any other provision of this Act, 13 the Corporation may enter into agreements with any other 14 railroads and with any State (or local or regional trans15 portation agency) responsible for providing commuter rail 16 or rail freight services over tracks, rights-of-way, and other 17 facilities acquired by the Corporation pursuant to authority 18 granted by the Regional Rail Reorganization Act of 1973 19 and the Railroad Revitalization and Regulatory Reform Act 20 of 1976. In the event of a failure to agree, the Commission 21 shall order that rail services continue to be provided, and it 22 shall, consistent with equitable and fair compensation prin23 ciples, decide, within 180 days after the date of submis24 sion of a dispute to the Commission, the proper amount of 25 compensation for the provision of such services and use of 15 1 tracks, rights-of-way, and other facilities. The Commission, 2 in making such a determination, shall consider all relevant 3 factors, and shall not permit cross-subsidization among inter4 city, commuter, and rail freight services.". 95TH CONGRESS 2D SESSION H. R. 11089 IN THE HOUSE OF REPRESENTATIVES FEBRUARY 22, 1978 Mr. McFALL introduced the following bill; which was referred to the Committee on Interstate and Foreign Commerce A BILL To provide for the designation and implementation of a revised basic rail passenger system, the restructuring of the National Railroad Passenger Corporation, and for other purposes. 1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Rail Passenger Service 4 Act of 1978". 5 6 7 to 8 9 10 11 GENERAL PROVISIONS SEC. 2. (a) PURPOSE.-The purposes of this Act are (1) provide for the designation and implementation. of a revised basic rail passenger system; (2) provide for the restructuring of the National Railroad Passenger Corporation; 2 3 4 2 (3) authorize appropriations for the National Rail road Passenger Corporation for fiscal years 1979 and 1980. (b) CONGRESSIONAL FINDINGS AND DECLARATION 5 OF PURPOSE.-Section 501 of title 45 of the United States 6 Code is amended to read as follows: 7 "8501. Congressional findings and declaration of purpose 8 "The Congress finds that modern, efficient, intercity 9 railroad passenger service is a necessary part of a balanced 10 transportation system and that the cost of providing such 11 services should be covered by the rates charged for such 12 services except where a lesser rate is in the public interest. 13 In addition, the Congress finds that there are varying levels 14 of public benefit to be derived from the provision of rail15 road passenger service in certain regions which justify levels 16 of public finance consistent with the public benefits realized. 17 These public benefits might include energy conservation, en18 vironmental enhancement, reduction of congestion experi19 enced by the other modes of passenger transportation and 20 the provision of accessible transportation for the elderly and 21 handicapped.". 2 2 2 22 DESIGNATION AND IMPLEMENTATION OF A REVISED BASIC 23 24 RAIL PASSENGER SYSTEM SEC. 3. (a) The Secretary of Transportation in coopera 25 tion with the National Railroad Passenger Corporation shall |